As we continue to work through the COVID pandemic, many businesses are still coming to terms with the fact that the expression “business as usual” has been rendered completely meaningless.
The COVID-19 crisis has been a significant external disruption; and for the foreseeable future, it is very likely that many things (businesses, schools, events, etc.) will still not be able to operate the same way they did at the beginning of 2020.
Yes, there are (and will likely be more) new guidelines and restrictions imposed by government agencies that have clearly change many business models. But in order for your brand to thrive in tomorrow’s “next normal” you need to understand that the thing that has changed the most is your customer. And if you’re not in tune with how their mindsets and priorities have changed over the past eight months, you risk alienating them and adversely impacting your business.
Consumers in tomorrow’s “next normal” will be battle-hardened as a result of having been forced to find new ways to survive and thrive under extraordinary circumstances. They are placing more weight on needs vs. wants. They are more savvy about “how” they shop and buy. Simply put, your organization is facing an entirely new demand curve and your future success is dependent upon being more customer-centric. But this notion of customer centricity is not new.
For the past couple decades power has been steadily shifting away from businesses towards the consumer as a result of significant technology advances and mass adoption. The internet and mobile devices have radically decreased (or in some cases, completely eliminated) a number of traditional “barriers” that allowed many businesses to make a descent, and predictable profit. Namely, information and geographic barriers.
Due to that internet-connected supercomputer in their hands, consumers today are better informed about competitive prices, product quality, available substitutes, seller/manufacturer reputation, and they don’t even need to physically visit a store to make a purchase. Over the last 20-25 years, we’ve seen evidence of this consumer power shift as many location-centric and product-centric organizations have struggled (e.g., Sears, JC Penney, Victoria’s Secret, Pier 1, etc.) and more customer-centric organizations have succeeded (e.g., Amazon, Netflix, Apple, USAA, Smile Direct Club, etc.). And the current pandemic crisis only managed to kick this up a couple more notches.
What is Customer-Centricity?
While there are a lot of very similar definitions for Customer-Centricity, I particularly like this one from Investopedia:
“Client-centric, also known as customer-centric, is an approach to doing business that focuses on creating a positive experience for the customer by maximizing service and/or product offerings and building relationships.
Client-centric businesses ensure that the customer is at the center of a business’s philosophy, operations, or ideas. Client-centric businesses believe that their clients are the primary reason that they exist, and they use every means at their disposal to keep the client satisfied.”
If you are not already a customer-centric organization, a good starting point is to understand that there are three core motivations or needs states when it comes to shopping or purchasing. I call them the Three I’s of Shopping:
Inspiration seeking – The consumer is open to the possibility of making a purchase if something inspires or captivates their imagination; but they might be best thought of as a browser.
Information seeking – The consumer is “in the market” and is contemplating making a purchase, from somewhere, sometime in the near future – but their current mission is obtaining information in order to make a better-informed purchase decision.
Immediate Need Fulfillment – The consumer needs to obtain something (product or service) reasonably soon; if not right now.
With the context of the three needs states or motivations above, the next step towards becoming more customer centric is to understand how well your organization delivers upon each occasion across each and every touchpoint relative to your customer’s expectations. That is, do you meet / exceed their needs, or are there gaps that could or need to be closed.
The following graphic can be a useful starting point for this effort:
With your customers at the center, the second ring in the above graphic represents many (but certainly not all) of the ways your customer might interact with or experience your brand. The outer ring then represents the front-line individuals who have direct contact with (or are responsible for communicating and / or marketing to) your customers.
For each customer interaction occasion and touch point, ask and answer the following questions:
1) Do we have the ability to identify the customer motivation (inspiration, information, immediate need)?
2) Do we understand all of their needs, wants, expectations?
3) Are we able to meet or exceed their needs, wants, expectations?
4) How well are we able to do this relative to our competitors?
5) Do we capture information (data) that can be leveraged to make experience, service, product or process improvements?
6) What data capture gaps exist? And how do we close them?
7) Are all customer interaction data available to (and leverageable across) all parts of our organization and their decision support / operational systems? For example:
a. EIS – Executive Information System
b. CRM – Customer Relationship Management
c. WA – Web Analytics
d. SI – Social Intelligence
e. MA – Marketing Automation / eMail / Digital Marketing
f. CMS – Content Management System
g. DAM – Digital Asset Management
h. C-SAT – Customer Satisfaction Program
i. BI – Business Intelligence / Reporting / Analytics
j. OMS – Order Management System
k. HRIS – HR Information Systems
l. ERP – Enterprise Resource Planning
m. WMS – Warehouse Management System
n. LS – Logistics Systems
o. etc…
While the questions and illustrative list of systems are not exhaustive, they should serve as a reasonable starting point for you to gauge how customer-centric you are already; or, how much work you might have in front of you as you embark upon your organization’s journey to becoming more customer-centric.
What’s next?
To quote Yogi Berra it’s pretty clear that “the future ain’t what it used to be.”
This year’s pandemic hit many of us like the Acme anvil dropping on Wylie Coyote. As a result, the economy has changed. The rules of business have changed. The consumer has changed.
What hasn’t changed is the fact that you have a business/organization to run, employees and suppliers to pay and most importantly, customers to take care of.
By focusing on your customers, and placing their wants, needs and expectations at the center of your organization’s decision making and operating processes, you will be increasing the odds that your brand will be around for the next crisis, and better prepared to handle it.
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